up

Family Trust What are the risks

One of the major risks or disadvantages of a family trust is that it can't distribute capital or revenue losses to its beneficiaries. As a result, should a trust incur a net loss, its beneficiaries won't be able to offset that loss against any other assessable income that they may derive.

Other risks and disadvantages to setting up a family trust can include:

Tax risks– tax avoidance can be a risky business and a tax accountant should be consulted before you unknowingly get yourself in trouble.

The name holding the assets– the trustee is the legal owner and this individual’s name will appear across all documentation.

Loss of ownership of assets– personal ownership of property is lost when managed through a trust.

Additional administration– this costs time and money long-term.

Of course, with any type of legal documentation or taxation advice, it's always advisable to consult the experts to best understand your individual situation.

RealRenta has all the tools that a property manager has but for less than ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property.

RealRenta also has a free vision, so why not check it out.

Jason Gwerder
Thursday, 22 June 2023


Join our mailing list Receive Free Property Tips and news


Now Partnered With

logo


Contact Us

1300 11 RENT (7368)
info@realrenta.com